Life is expensive, everyone knows that. You will therefore not always be able to buy everything you need at that time: after all, you can take out a loan for every whim. Of course, that does not mean that taking out a loan is always out of the question. Do you really urgently need money for a purchase that cannot wait (a new washing machine if the old one has just broken down, for example, a much-needed repair to a leaking roof or an expensive repair to get your car through the MOT), then taking out a loan can be a good idea. But where and with whom do you take out a loan?
In any case, borrowing money always costs money. Unless of course you have a rich 'aunt Agaath ' with your heart in the right place, because family members are sometimes willing to provide an interest-free loan. Especially when it comes to something sustainable, such as starting your own company or financing your dream wedding , your loved ones may be happy to offer you a helping hand. But do you know that you can also borrow money from your employer?
Borrowing money from your employer, how does that work?
The law stipulates that employers may help their employees by providing a loan . This loan may not be interest-free, but the calculated interest is much lower than the applicable rate at banks and credit card companies. In 2012 the interest rate was 2.85%, which is quite favorable. However, employers may deviate from this and stipulate a higher interest rate for themselves, but this must then be agreed in advance. Repayment is usually “automatic”, in the sense that the monthly amount to be repaid is withheld from the wages. A loan through the employer is therefore a reliable solution for both parties.
Loan without interest by exception
As an employer, you may also grant an interest-free loan, but only under certain conditions: the loan must be used for the purchase, maintenance or improvement of the employee's own home . You must record in writing that the loan will be used for this purpose, otherwise you run the risk of getting the tax authorities on your roof. You must also be able to provide copies of payment receipts, if requested.